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2 Industrial DevelopmentLate nineteenth-century U.S. offers ideal conditions for rapid industrial growthAbundance of cheap natural resourcesLarge pools of laborLargest domestic market in the worldCapital, government support without regulationRapid growth2

3 An Empire on RailsU.S. industrial economy based on expansion of the railroadsSteamships made Atlantic crossings twice as fastThe telegraph and telephone transformed communications3

4 "Emblem of Motion and Power"Railroads transform American lifeend rural isolationallow regional economic specializationmake mass production, consumption possiblelead to organization of modern corporationstimulate other industriesRailroads capture the imagination of the American people4

5 Building the EmpireU.S. lays over 200,000 miles of track costing billions of dollarsExpenses met by government at all levelsFederal railroad grants prompt corruptionRailroads save government $1 billion in freight costs5

9 Rails Across the Continent1862--Congress authorizes the transcontinental railroadUnion Pacific works westward from Nebraska using Irish laborersCentral Pacific works eastward using Chinese immigrantsMay 10, 1869, tracks meet in UtahBy 1900, four more lines to Pacific7

13 Carnegie and Steel Large-scale steel production requiresaccess to iron ore deposits in Minnesotaextensive transportation networkRequirements lead to “vertical integration”definition: a type of organization in which a single company owns and controls the entire process from obtaining raw materials to manufacture and sale of the finished product10

14 Carnegie and Steel (2) 1872--Andrew Carnegie enters steel businessBy 1901 Carnegie employs 20,000, produces more steel than Great BritainSells out to J. P. MorganMorgan heads incorporation of the United States Steel Company11

17 The Business of InventionLate 19th-century industry births American technologyAn Age of Inventiontelegraph, camera, processed foods, telephone, phonograph, incandescent lampElectricity in growing use by 190013

19 The Sellers Marketing becomes a science in late 1800sAdvertising becomes commonNew ways of selling include chain store, department store, brand name, mail-orderAmericans become a community of consumers14

20 The Wage EarnersThe labor of millions of men and women built the new industrial societyreal wages rose, working conditions improved, and workers’ national influence increasedHealth and educational services expanded benefiting workers15

21 Working Men, Working Women, Working ChildrenChronically low wagesaverage wages $ per yearsalary required for decent living $600 per yearDangerous working conditionsrailroad injury rate 1 in 26, death rate 1 in 399factory workers suffer chronic illness from pollutants

22 Working Men, Working Women, Working Children (2)Composition of the labor force by 190020% womenwomen represented in 296 of 303 occupations10% of girls employed, 20% of boysWorking children“child labor” means under 14all children poorly paidgirls receive much lower wage than boys

23 Working Men, Working Women, Working Children (3)Working women’s characteristicsmost young and single25% of married African American women work in 1900Working women’s jobsmany move into clerical positionsa few occupy professional positionsWorking women’s earnings unequal to men’s

24 Working Men, Working Women, Working Children (4)Discriminatory wage structureadults earn more than childrenmen earn nearly twice as much as womenwhites earn more than blacks or AsiansProtestants earn more than Catholics or Jewsblack workers earn less at every level and skillChinese suffer periodic discrimination1879—California constitution forbids corporations to hire Chinese1882—Federal Chinese Exclusion Act prohibits Chinese immigration for 10 years

25 Culture of WorkFactory work habits demand adjustments for immigrants, rural folkMany adjust well enough to advanceMany more see children advance to better jobs16

29 Industrialization’s Benefits and CostsBenefits of rapid industrializationrise in national power and wealthimproving standard of livingHuman cost of industrializationexploitationsocial unrestgrowing disparity between rich and poorincreasing power of giant corporations19